OK to drop dependent coverage under salary reduction election when Med

[jsb]

Employee's dependent was added to plan (against ee's will) because of court order. Plan is a 125 POP.

Court order is rescinded after several years. Can employee (or employer?) make election change to drop dependent from coverage as a mid-year change? Let's assume that the dependet is otherwise still eligible for coverage and that dropping dependent changes premium from "ee+1" to individual coverage level.

Any cites appreciated. Thanks in advance.

[Guest b2kates]

Are you saying that a qualified medical support order was terminated?

Then employer could change coverage, but dependent would be entitled to Cobra beneficiary status.

[QDROphile]

Don't forget to check what the plan says and to determine if the child coverage was added involuntarily under the order or if the employee actually made the election. Often employees will make the election when there is an order to the same effect.

[jsb]

b2kates - Yes, we received subsequent notice from court releasing the original order. But it is a "...no longer required to provide coverage" notice, rather than a "...remove from coverage" type order. You are suggesting that this would be a COBRA qualifying event? Can you provide a cite?

QDROphile - coverage was added involuntarily. Plan does not specifically address this issue, but we seek to be as permissive as the law allows, unless we specifically exclude something. As a change event, this would not be excluded by our document, though we need to establish justificaiton that the change would be permitted under 125, hence the instant question.

[Kirk Maldonado]

b2kates:

What is the "qualifying event" (as that term is defined in COBRA) that permits the dependent to elect COBRA?